SHANGHAI, Jan 16 (SMM) - In terms of raw materials, alumina prices rose slightly last week. The full costs of smelters dipped 72 yuan/mt from a week ago to 17,721 yuan/mt as of last Friday mainly because the electricity prices of some smelters fell slightly. Spot aluminium prices rebounded significantly last week, with the SMM A00 aluminium prices at 18,460 yuan/mt on Friday, enabling smelters to return to the profit-making territory. Smelters reported an average profit of 738.7 yuan/mt.
The thermal power costs will show a downward trend in the medium and long run as increasing production and imports will weigh on coal prices. However, the short-term power costs will hardly fall sharply, and the raw material prices of smelters may hold stable, thus smelters’ costs will change little.
